Introduction
Digital transformation is the introduction of modern technologies into a company's key business processes and development strategy. It is about using digital tools to optimize operations, increase efficiency and improve business competitiveness.
Many analysts predict that 2024 will be a pivotal year in terms of digitalization for European businesses. After the pandemic stress test, companies have realized the importance of adopting modern technologies to ensure rapid adaptation to external challenges.
According to McKinsey research, the pace of digital transformation in Europe has grown 3-4 times faster than it was before 2020. 64% of surveyed European companies mentioned digital transformation as one of the top 3 strategic priorities for the next 5 years.
Deep digital transformation will help European businesses cope with new challenges - from high inflation and lower economic growth to talent shortages in the labor market. By optimizing processes and introducing new business models, companies will get a strong impetus for development in the challenging environment of 2024.
Key trends in the digital transformation of European business in 2024
Trend 1 - Active adoption of AI and machine learning
Artificial intelligence (AI) is now increasingly used to automate various business processes. AI-based systems can significantly increase efficiency by processing large amounts of data.
In particular, solutions based on machine learning are actively gaining popularity. They are capable of independently finding patterns in data and optimizing algorithms without human involvement.
According to IDC, by 2024, European business spending on AI and analytics will increase twofold compared to 2022. Companies are increasingly integrating neural networks and machine learning into applications ranging from predictive analytics to recommendation systems and customer service.
Trend 2 - Massive migration to the cloud
When it comes to general trends in digital business transformation, cloud technology is at the forefront. IDC predicts that in 2024, more than 65% of European organizations will move the majority of their IT systems to the cloud.
The main drivers of this process are:
The flexibility and scalability of the cloud - companies can rapidly scale up or down computing capacity as needed
Reduced costs for in-house IT infrastructure and its maintenance
High speed of implementation of new services in the cloud compared to traditional IT systems.
First of all, cloud services are actively used in such areas as data storage, accounting, IT and telecommunications. The process of moving to the cloud will only accelerate in 2024.
Examples of digital transformation in industries
Manufacturing: IoT and smart factories
The manufacturing sector is actively adopting automation and robotization technologies to optimize its operations. One of the key trends here is the use of IoT (Internet of Things) to create so-called "smart factories".
With the help of sensors and other "smart devices" connected to a unified network with big data analytics, maximum coordination and efficiency is achieved at all stages of production. This helps to quickly optimize equipment utilization, predictively maintain machines and minimize downtime.
According to ABI Research, by 2030, more than 40% of manufacturing companies across Europe will be integrated with IoT. This will allow them to reduce costs by 10-15% while increasing output in parallel.
Finance: digital banking and cryptocurrency
Fintech is one of the most advanced areas in terms of the adoption of innovative technologies. In addition to the rapid development of online and mobile banking, it is undergoing revolutionary changes due to the proliferation of cryptocurrencies and blockchain.
According to Crypto.com, by 2024, about 17% of European Union residents will actively use crypto-assets in their daily lives. At the same time, at least 65% of them note the greater convenience of digital financial services compared to traditional banks.
Experts predict that national currencies will soon be displaced by global digital assets like bitcoin. This will fundamentally change the paradigm of the financial system itself
